China Mobile falls on restructuring news
27 May 2008
Hong Kong-traded shares in China Mobile fell sharply on Monday as investors feared that the telecom restructuring announced on Saturday would negatively impact the mobile carrier, the South China Morning Post reported. China Mobile shares fell 8.15% to close at HK$114.90 (US$14.72) in what was the company's biggest single-day loss in six years. The announcement on restructuring, made by the Ministry of Information Industry, the Ministry of Finance and the National Development and Reform Commission, suggested there would be stricter regulation within the industry once the restructuring is completed. Analysts believe that the tighter regulations would be aimed at reducing China Mobile's market dominance.